UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q


       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                  For the Quarterly Period Ended June 30, 2003

                        Commission File Number 001-15977

                             TIGER TELEMATICS, INC.
             (Exact name of registrant as specified in its charter)

                  Delaware                                      13-4051167
       (State or other jurisdiction of                        (IRS Employer
       Incorporation or organization)                     Identification Number)

10201 Centurion Parkway North Ste. 600 Jacksonville, FL            32255
       (Address of principal executive offices)                  (Zip Code)

                                 (904) 279-9240
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                           Yes  x          No
                               ---            ---

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                                          Outstanding as of
Class                                     March 31, 2004
---------------------------               ---------------------------
Common Stock, Par                         316,216,415
Value $0.001 per share

<PAGE>

                                    CONTENTS

                                                                       Page
                                                                       ----


Financial Statements

     Condensed Consolidated Balance Sheets                              F-1

     Condensed Consolidated Statements of Operations                 F-2 - F-3

     Condensed Consolidated Statement of Stockholders' Deficit          F-4

     Condensed Consolidated Statements of Cash Flow                  F-5 - F-6

     Notes to Condensed Consolidated Financial Statements            F-7 - F-21






<PAGE>
<TABLE>
<CAPTION>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                   June 30,         December 31,
                                                                     2003               2002
                                                                 (unaudited)
                                                               ---------------    ---------------
<S>                                                            <C>                <C>
Assets
Current Assets
        Cash                                                   $        18,209    $        (1,672)
        Accounts receivable, less allowance for doubtful
            Accounts, June 30, 2003 $0; December 31, 2002 $0             6,882            116,648
        Advances to officers and employees                                --                 --
        Inventories                                                     66,201            195,576
        Prepaid expenses and deferred income                             1,111             83,545
        Assets of discontinued operations                                 --              517,210
                                                               ---------------    ---------------
        Total Current Assets                                            92,403            911,308
Property and Equipment, net                                            228,494            237,196

Deposits and Other Assets                                                 --                 --
                                                               ---------------    ---------------
        Total Assets                                           $       320,897    $     1,148,504
                                                               ===============    ===============

Liabilities and Stockholders' Deficit
Current Liabilities
       Accounts payable                                        $     1,967,958    $     1,449,326
       Amounts due stockholders                                        916,981          1,210,785
       Notes payable                                                    53,835             86,262
       Accrued expenses                                              1,993,413          1,961,085
       Customer deposits                                                  --                 --
       Liabilities of discontinued operations                        1,090,646          1,572,855
                                                               ---------------    ---------------
                       Total current liabilities                     6,022,833          6,280,313
                                                               ---------------    ---------------

Long term debt                                                         166,757            175,736

Stockholders' Deficit
      Common stock, at par value                                        88,213             73,813
      Authorized 250,000,000 shares, issued 95,572,647
       June 30, 2003 ; Authorized 100,0000,000
       80,186,426 December 31, 2002 shares

      Additional paid in capital                                    10,900,725         10,279,953
      Subscription receivable                                             --                  (36)
      Accumulated deficit                                          (16,857,627)       (15,661,275)
                                                               ---------------    ---------------
                                                                    (5,868,693)        (5,307,545)
                                                               ---------------    ---------------
                                                               $       320,897    $     1,148,504
                                                               ===============    ===============
</TABLE>

                                       F-1
<PAGE>
<TABLE>
<CAPTION>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)


                                                         Three Months ended June 30,
                                                     ----------------------------------
                                                           2003                2002
                                                     ---------------    ---------------
<S>                                                  <C>                 <C>
Net sales                                            $        (9,297)   $         1,063
Cost of goods sold                                            (1,013)            41,625
                                                     ---------------    ---------------
               Gross Profit                                  (10,310)           (40,562)
                                                     ---------------    ---------------

Operating expenses
      Selling expense                                         18,659            124,758
      General and administrative expense                     387,875          2,024,758
                                                     ---------------    ---------------
               Total Operating Expenses                      406,534          2,149,516
                                                     ---------------    ---------------

               Operating loss                               (412,291)        (2,190,078)
                                                     ---------------    ---------------

Other income (expense)
      Impairment of goodwill                                    --           (3,714,818)
      Currency Translation Adjustment                         65,940            (42,528)
      Interest expense                                       (13,618)           (16,263)
                                                     ---------------    ---------------
                                                              52,322         (3,773,609)
                                                     ---------------    ---------------
Loss from continuing operations                             (359,969)        (5,963,687)
Loss from discontinued operations                               --             (164,040)
                                                     ---------------    ---------------
               Net loss                              $      (359,969)   $    (6,127,727)
                                                     ===============    ===============

               Basic and diluted net loss per
                 common share                        $      (0.00379)   $       (0.0889)
                                                     ===============    ===============
               Basic and diluted net loss from
                 Continuing operations per share     $      (0.00379)   $       (0.0865)
                                                     ===============    ===============

               Weighted average shares outstanding
                  (Basic and diluted)                     95,572,647         68,939,255
                                                     ===============    ===============


See Notes to Consolidated Financial Statements.

                                       F-2
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)


                                                          Six Months ended June 30,
                                                     ----------------------------------
                                                          2003                2002
                                                     ---------------    ---------------

Net sales                                            $        (8,247)   $        29,583
Cost of goods sold                                            (4,301)            72,641
                                                     ---------------    ---------------
               Gross Profit                                  (12,548)           (43,058
                                                     ---------------    ---------------

Operating expenses
      Selling expense                                         58,761            249,161
      General and administrative expense                     875,690          2,853,344
                                                     ---------------    ---------------
               Total Operating Expenses                      934,451          3,102,505
                                                     ---------------    ---------------

               Operating loss                               (959,902)        (3,145,563
                                                     ---------------    ---------------

Other income (expense)
      Impairment of goodwill                                    --           (3,714,818
      Currency Translation Adjustment                         45,085            (48,491)
      Interest expense                                       (24,379)           (38,620)
                                                     ---------------    ---------------
                                                              20,706         (3,801,929)
                                                     ---------------    ---------------
Loss from continuing operations                             (939,195)        (6,947,492)
Loss from discontinued operations                               --             (353,430
                                                     ---------------    ---------------
               Net loss                              $      (939,195)   $    (7,300,922)
                                                     ===============    ===============

               Basic and diluted net loss per
                 common share                        $      (0.00989)   $       (0.1106)
                                                     ===============    ===============
               Basic and diluted net loss from
                 Continuing operations per share     $      (0.00989)   $       (0.1053)
                                                     ===============    ===============

               Weighted average shares outstanding
                  (Basic and diluted)                     89,245,365         66,000,693
                                                     ===============    ===============

</TABLE>

See Notes to Consolidated Financial Statements.

                                       F-3
<PAGE>
<TABLE>
<CAPTION>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
                                   (unaudited)


                                                    Common Stock           Additional
                                                    ------------             Paid in     Subscriptions  Accumulated       Total
                                               Shares         Amount         Capital      Receivable      Deficit        Deficit
                                            ------------   ------------   ------------   ------------   ------------   ------------
<S>                                         <C>            <C>            <C>            <C>            <C>            <C>

Balance (deficit) at December 31, 2002        80,186,426   $     73,813   $ 10,279,953   $        (36)  $(15,661,275)  $ (5,307,545)

Issuance of common stock and warrants          8,046,221          8,046        273,262           --             --          273,262

Common Stock issued in satisfaction of
       Obligations                             4,440,000          4,440        113,660           --             --          118,000

Common stock issued in settlement of a
dispute as adjusted for agreement
(previously included in capital but shown
as not issued)                                 2,400,000          2,400        249,400           --             --          251,800


Net Loss                                            --             --             --             --         (939,195)      (939,195)
                                            ------------   ------------   ------------   ------------   ------------   ------------
Balance (deficit) at June 30, 2003            95,072,647         88,213   $ 10,900,725   $        (36)  $(16,857,627)  $ (5,868,693)
                                            ============   ============   ============   ============   ============   ============

</TABLE>

*excludes  500,000  actually  issued but not  considered  issued  for  statement
purposes See footnotes.


See Notes to Consolidated Financial Statements.

                                      F-4
<PAGE>
<TABLE>
<CAPTION>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                                                           Six Months ended June 30,
                                                                        --------------------------------
                                                                             2003              2002
                                                                        --------------    --------------
<S>                                                                     <C>               <C>
Cash Flows From Operating Activities
    Net loss                                                            $     (939,195)   $   (7,300,922)
    Adjustments to reconcile net loss to net cash used in
    Operating activities:
        Depreciation and Amortization                                           34,509            98,798
        Currency translation adjustments                                       (65,940)           48,491
        Changes in assets and liabilities                                      567,127           694,828
        Interest on notes payable and stockholder loans
          Capitalized to principal balances                                       --              23,144
        Write down of deposit                                                     --             100,000
        Impairment of goodwill on asset acquisition                               --           3,714,818
        Obligations paid with common stock                                     118,000           930,000
                                                                        --------------    --------------
               Net cash used in operating activities                          (285,499        (1,790,843)

Cash Flows From Investing Activities
    Cash received from acquisition of Tiger Telematics                            --                 787
    Advances to Comworxx                                                          --             (50,000)
    Proceeds from sale of property and equipment                                  --
    Purchase of property and equipment                                            --             (54,094)
    Collection of advances to officers and employees                              --              26,029
    (Increase) decrease in deposits and other assets                              --              20,000
                                                                        --------------    --------------
Net cash (used in) provided by investing activities                               --             (72,338)
                                                                        --------------    --------------
Cash Flows From Financing Activities from continuing
operations

    Issuance of common stock and warrants                                      525,062           876,673
    Interest on Notes payable                                                     --                --
    Advances to employees                                                         --                --
    Loans and advances from stockholders                                          --           1,275,810
    Increase in excess of outstanding checks and bank balances                  44,562           187,880
    Repayments to stockholders                                                (293,804)         (479,513)
                                                                        --------------    --------------
               Net cash provided by used in financing activities               (18,209)        1,842,850
                                                                        --------------    --------------
               Net change in cash                                                 --             (20,331)


Cash:
    Beginning                                                                     --              20,331
                                                                        ==============    ==============
    Ending                                                              $       18,209              --
                                                                        ==============    ==============

Supplemental Disclosure of Cash Flow Information
    Cash paid for interest                                              $       24,379    $       15,476
                                                                        ==============    ==============
Supplemental Disclosure of Non-cash Investing and Financing
       Activities
        Common Stock issued in payment of obligations                   $      369,800    $      930,000
                                                                        ==============    ==============
        Common Stock issued in exchange for subscriptions receivable    $         --      $         --
                                                                        ==============    ==============
        Conversion of Notes Payable and Amounts Due Stockholders into
        Common Stock                                                    $         --      $      922,723
                                                                        ==============    ==============


                                       F-5
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONTINUED
                                   (unaudited)


                                                                             2003              2002
Acquisition of Tiger Telematics:
     Working capital acquired, net of cash $787                         $         --             144,917
      Distribution Agreement                                                      --           2,800,000
      Order Book                                                                  --             463,050
      Property and Equipment                                                      --               1,463
     Amounts due to stockholders                                                  --            (610,190)
     Common Stock issued                                                          --          (2,800,000)
                                                                        --------------    --------------
     Cash received                                                      $         --                 787
                                                                        ==============    ==============




                                                                             2003              2002
Acquisition of Comworxx, Inc.:
     Working capital acquired,                                                    --            (957,063)
       Property and equipment                                                     --             280,629
       Goodwill                                                                   --           3,714,818
       Other assets                                                               --              15,470
       Notes payable assumed                                                      --              (8,664)
     Common Stock issued                                                          --          (3,045,190)
                                                                        --------------    --------------
     Cash received                                                      $         --                --
                                                                        ==============    ==============

</TABLE>

See Notes to Consolidated Financial Statements.

                                      F-6
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - BASIS OF PRESENTATION

The  condensed  consolidated  financial  statements  as of June 30, 2003 and the
three  months and six months ended June 30, 2003 and 2002  included  herein have
been  prepared  by  the  Company,  without  audit,  pursuant  to the  rules  and
regulations of the Securities and Exchange  Commission.  Certain information and
footnote  disclosures  normally  included in  financial  statements  prepared in
accordance with accounting principles generally accepted in the United States of
America have been condensed or omitted  pursuant to such rules and  regulations.
In the  opinion  of  management,  all  adjustments,  consisting  only of  normal
recurring  adjustments,  necessary  for a fair  presentation  of  the  financial
information  for  the  periods   indicated  have  been  included.   For  further
information   regarding  the  company's  accounting   policies,   refer  to  the
consolidated  financial  statements  and related notes included in the company's
Annual  Report on form 10-K for the year ended  December 31, 2002 and 2001.  The
condensed  consolidated financial statements for the quarter ended June 30, 2003
were reviewed by UK outside  independent  accountants  and not fully reviewed in
consolidation  .Upon completion by accountants the statements will be amended to
this Form 10Q will be made as appropriate.

The balance sheet at December 31, 2002 is derived from the financial  statements
in Annual Report on Form 10-K for the year ended  December 31, 2002. The Company
decided to file that Form 10K report  without  those  audit  opinions  and amend
subsequently  with those  opinions  in order to provide  the most up to date and
current information to its shareholders and investors. The Company believes that
based on the extent of work completed to date, that the financial statements and
associated  balance sheet contained herein will not be materially altered in the
amended Annual Report on Form 10K. The consolidated financial statements include
the accounts of Tiger  Telematics,  Inc, the public held parent  company,  Tiger
Telematics,  USA, Inc.( a near dormant  subsidiary,  Tiger  Telematics,  Europe,
Ltd.,  beginning  December  2002 and the  operations of Tiger  Telematics,  Ltd.
through the  December 17, 2002 date of its  divesture  when sold to an unrelated
third party  corporation  based in Sweden and the  discontinued  operations  of,
Floor Decor LLC, and Media Flooring, Inc. through the date of their divesture on
August 8, 2003.  The Company  started Tiger  Telematics  Europe Ltd. in December
2002 and a related entity  Childtracker Ltd. that was a development  entity that
existed  as a part  of  Tiger  Telematics,  Ltd.  to  focus  on  developing  new
Telematics  products  including next generation  fleet telematic  products,  the
child tracker products,  the gaming products now called Gizmondo and to focus on
marketing  principally  in the UK. At Tiger Europe Ltd.  transactions  have been
included for the  Childtracker  Ltd.  subsidiary  that were considered a part of
Tiger Europe Ltd. since the transactions were principally  entered into and done
for the use and benefit of Tiger Europe Ltd. for  financial  reporting  purposes
but for which the UK company based on advise of outside independent  accountants
will  need  to  prepare  annual   statutory   statements  for  each  entity  and
Childtracker  Ltd.  will  be  dissolved  as  a  separate  entity.  All  material
intercompany accounts and transactions are eliminated in consolidation.

NOTE B - REVERSE ACQUISITION AND EQUITY TRANSACTIONS

As of December 31, 2000 Floor Decor ( the Company's name prior to June 2003) had
1,000 shares of common stock  authorized and 378 shares issued and  outstanding.
The Company  issued an additional  622 shares of common stock on January 1, 2001
at a cost of $1 per share. As a result of these additional  shares being issued,
the Company had 1,000 shares of common stock  authorized and 1,000 shares issued
and  outstanding  as of March 31,  2001  prior to the  reverse  acquisition  (as
described below) on May 22, 2001.

                                      F-7
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On May 22, 2001,  a  purchasing  group led by A.J.  Nassar  acquired  21,900,000
shares of the common  stock of Media  Communications  Group,  Inc.  ("MCGI")  in
exchange for all of the outstanding common shares of Floor Decor, Inc. to become
the owner of  approximately  40% of the issued and  outstanding  common stock of
MCGI  pursuant to an agreement  including the merger of Floor Decor into a newly
formed wholly owned subsidiary of the Company. Prior to the acquisition of Floor
Decor,  MCGI was a "public shell"  company,  with no  significant  operations or
assets.  The  acquisition  of  Floor  Decor  was  accounted  for  as  a  reverse
acquisition.  Under a reverse acquisition, Floor Decor is treated for accounting
purposes as having  acquired  MCGI and the  historical  financial  statements of
Floor Decor become the  historical  financial  statements of MCGI. In accounting
for the reverse acquisition, the equity of Floor Decor, as the surviving company
is  recapitalized.  Also,  upon  the  closing  of  the  reverse  acquisition  an
obligation to an original MCGI vendor for $4,931 was assumed.

To compute the loss per share for the three  months and nine  months  ended June
30,  20001,  the  54,236,664  shares  outstanding  at the  date  of the  reverse
acquisition  was  assumed to be  outstanding  since  July 3,  2000,  the date of
inception of the Company.

Since the Company had a loss for all periods  presented,  basic and diluted loss
per common  share are equal.  The Company has not included  7,218,592  potential
common shares relating to outstanding common warrants as of June30,  2003 in the
calculation  of the diluted  earnings  per share for the six months  ended 2003,
because their effect would be  antidilutive.  In addition,  the warrants expired
without exercise in December 2003.

During the 1st quarter of 2002 the Company sold  2,512,450  shares of its Common
Stock as part of the private placement  transaction  initiated in December 2001.
These  shares  were sold at $ 0.40 per  share.  For each  share of Common  Stock
purchased,  the  investor  also  received  a warrant  representing  the right to
purchase  one  additional  share of  Common  Stock at a price of $0.75 per share
exercisable  through  December  31,  2003.  Proceeds  from these  sales,  net of
advisory  fees  totaling  $128,307,  amounted  to  $876,673.  The  Company has a
disputed  agreement  with an advisor  for  consulting  services.  For  financial
reporting  purposes  this was treated as earned but not issued.  In May 2003 the
dispute was  resolved and the shares are shown as issued in the six months ended
June 30, 2003  Financial  Statements  See page F-3  Consolidated  Statements  of
Stockholder's Deficit.


                                      F-8
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the 1st quarter of 2002, the company sold 2,512,450  shares of its Common
Stock as part of the private placement  transaction  initiated in December 2001.
These  shares  were  sold at $0.40 per  share.  For each  share of Common  Stock
purchased,  the  investor  also  received  a warrant  representing  the right to
purchase  one  additional  share of  Common  Stock at a price of $0.75 per share
exercisable through December 21,2003. Proceeds form these sales, net of advisory
fees  totaling  $128,307,  amounted to  $876,673.  The  aforementioned  warrants
expired as the end of December 2003.

The Company had an agreement with an advisor for consulting services.  Under the
agreement, the Company was to issue 2,400,000 shares of stock, which were valued
at $810,000. For financial reporting purposes this was treated as earned but not
issued.  In May 2003, the shares were issued  pursuant to a settlement  with the
advisor that also settled  certain other  contingent  obligations.  See page F-3
Consolidated Statements of Stockholder's Deficit. and Note K. Subsequent Events.

During  the 1st  quarter of 2002,  certain  stockholders  and  others  converted
$922,733 of notes payable and amounts due to stockholders  into 2,306,809 shares
of Common Stock. For each share of Common Stock purchased,  they also received a
warrant  representing the right to purchase one additional share of Common Stock
at a price of $.075 per share exercisable through December 31, 2003. The company
also agreed to issue  warrants to purchase  416,000  shares of Common Stock at a
price of $0.75 per share  exercisable  through December 2003 as advisory fees in
connection  with these stock sales.  These  warrants  were not yet issued due to
unresolved  issues with the  advisor.  In May 2003 the dispute was resolved in a
settlement where the company did not have to issue the warrants. See also Note K
Subsequent Events.

In October 2002,  certain  stockholders  converted $455,761 of debt to equity at
$.010 per share. See Note C- Related Party Transactions.

During first  quarter  2003,  the Company  issued  2,990,000  common  shares for
various goods  services  rendered by advisors and  consultants.  The shares were
recorded at the market  price of the shares in the public  market as of the date
of the individual  issuances.  The stock was issued in amounts of either $.03 or
$.04 per share to  reflect  the  market  price  for  shares at the time for each
transaction.  In aggregate the Company  recorded an expense of $93,100 to record
these transactions in first quarter ended March 31, 2003. No commission was paid
or reimbursement of expenses in regards to any share  transaction in 1st quarter
2003.

In second quarter 2003, in order to obtain various goods and services  including
consulting  services,  the Company issued 450,000 shares for services  valued at
the then market rate of $.03 per share and expensed  $15,000.  All of the shares
by  the  Company  issued  were  restricted  stock  subject  to  Rule  144 of the
Securities  Act.  The Company  settled its  dispute  with an equity  advisor and
issued  2,400,000 as discussed in Note C Equity  Transactions.  The  transaction
included a release of all indebtedness including unpaid accrued expenses, actual
or alleged  by the  advisor as respect  to the  Company.  The  Company  issued 1
million  shares to convert  urgent demand note debt  obligations  for $10,000 at
$.01  per  share  price.  The  Company  issued  8,046,221  in  shares  to  raise
(pound)175,000  converted at $290,309 for use in its UK  subsidiary  for working
capital  and  product  development  expenses.  The shares were issued in private
placement transactions to qualified investors or strategic partners or providers
of services and goods to the Company.  Pursuant to  subscription  agreements  to
sophisticated  or accredited or foreign  investors or  corporations at per share
prices  ranging from $.02 to $.04 per share  recorded as the market price of the
stock at the time of the  transaction or at the rate agreed to in the respective
agreements if appropriate.


                                      F-9
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At a stockholders meeting as (properly adjourned) on May 9, 2003 shareholders of
the  company  approved  an  increase  in  authorized  shares  authorized  by  an
additional  150,000 shares from 100,000 shares to a new total  authorized of 250
million shares effective as of that date.

Subsequent equity  transactions  were entered into the following  quarters which
are discussed in the Footnote K Subsequent Events.

NOTE C - RELATED PARTY TRANSACTIONS

As of June 30, 2003, the Company had 15% demand notes totaling $77,597,  payable
to certain current or previous stockholders (combined ownership less than 1%).

The  Company  also has  non-interest  bearing  notes  and non  interest  bearing
advances  of  $1,008,372  payable  to  the  two  former  Tiger  Telematics  Ltd.
stockholders (combined ownership over 10% of the Company as discussed in note F,
$610,190 of the advances owed prior to October 2002 were  converted  into Common
Stock and warrants in October 2002. The warrants expired in December 31, 2003.

A  shareholder  borrowed  some of the funds  advanced to the Company (with funds
going to the Tiger Telematics,  Ltd.  subsidiary) from a private investment bank
London  International  Mercantile Bank, based in London. The shareholders failed
to repay the note when due. The  investment  firm made demand on the  subsidiary
Tiger Ltd. to repay the funds since Tiger Ltd. was the beneficiary of the funds.
The Company  maintained  that it was not  responsible  for that  obligation  and
responded to the demand  accordingly.  The Company showed the obligations to its
shareholder on the financial statement. The Tiger Telematics,  Ltd. entered into
a settlement  agreement  Court approved as a Tomblin Order where the demand note
to the  shareholder  was forgiven by the shareholder in exchange for the company
entering into an installment note to be paid over time directly with the private
investment  bank in the same amount as forgiven  by the  shareholder  of 290,000
sterling.  The shareholder remained contingently obligated for the sum owed plus
interest in event that the payment was not made timely by tiger Telematics, Ltd.
The Company  issued a limited  conditional  guaranty for the  obligation  to the
private bank. The settlement agreement called for monthly payments at a variable
interest rate. Tiger Ltd. repaid approximately  $80,000 prior to the sale of the
business  on  December  17,  2002.  See  Note K.  Following  the  sale of  Tiger
Telematics,  Ltd.  the Company was apprised  that the Tiger Ltd.  renamed by the
acquirer to Eagle Eye was placed in liquidation insolvency under the laws of the
United  Kingdom by LIM for  failure  to make the  payments  required  under this
arrangement.  The private  investment firm made demand on the Company as respect
to the  guarantee  but has made no  attempt to  collect  on the  guaranty  as it
pursues its direct remedies  against the sold Tiger Ltd. company and against the
original borrower of the funds. The private  investment bank also has collateral
provided  by the  original  borrower  of  common  stock  of the  Company  in the
aggregate sum of 3,500,000  proved by the original  borrower to secure the funds
as well as certain  real estate  owned by the  original  borrower.  Therefore no
additional  provision  has  been  made  in  the  financial  statements  for  any
contingent liability as respect to the guarantee since the Company believes that
the private  investment firm will be able to recover such amounts  guaranteed by
the company from the exercise of its rights against the respective collateral.

The Company has received inquiries from persons who maintain that they have made
an  investment  in the  Company  for which the  Company has no records and which
appear to be private transactions among various shareholders.  Legal counsel has
looked  into the  circumstances  surrounding  each  inquiry in late 2002.  Legal
counsel  has  advised  that some  transactions  may have  taken  place in the UK
related the Tiger Telematics,  Ltd. prior to its acquisition by the company.  It
is possible that fund raisers reportedly associated with Tiger Ltd. prior to its
acquisition  by the Company on February  4, 2002 may have raised  funds  through
various private ventures. These transactions did not involve the Company and its
officers or directors the company believes that such transactions  should not be
reflected on the financial  statements of the Company and therefore no provision
has been made for these alleged investments.


                                      F-10
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At a special meeting of  stockholders on July 31, 2001, the  stockholders of the
Company  voted in favor of the adoption of the  Company's  2001  Employee  Stock
Option Plan ("The Plan").  The total number of shares of common stock  available
for grant under the Plan is  8,000,000  shares.  As of  December  31,  2001,  no
employees  had been  granted  options  under the Plan.  As of December  31, 2002
3,600,000 of options have been granted  under the plan.  All of the options were
issued  pursuant to the plan at the  prevailing  market prices as of the date of
issue of $.06. As of quarter ended June 30, 2003 2,700,000 shares of the options
had vested with a further  vesting of 900,000 shares  occurring on February 2004
(occurred) and to vest 900,000 in February 2005.

As of December 31, 2002 the company  owed an  executive  officer and director of
the company  approximately $50,000 comprised of $38,000 of salary and $12,000 of
reimbursable  expenses  incurred on behalf of the Company.  As of March 31, 2003
the  Company  owed that same  executive  officer  and a director  of the company
approximately   $79,000  comprised  of  approximately   $72,000  of  salary  and
approximately $7,000 of reimbursable expenses incurred on behalf of the Company.
As of June 30, 2003, the Company owed the same executive  officer and a director
of the Company  approximately  $135,603  comprised of approximately  $128,154 of
salary and approximately $7,449 of reimburseable  expenses incurred on behalf of
the Company.

Total interest expense on stockholder debt amounted to $3,000 and $6,000 for the
three months and six month periods ended June 30, 2003 respectively.

In May 2003 the  company  borrowed  $10,000 in a  convertible  demand  loan with
interest of $500. for 20 days in order to meet working  capital needs.  The loan
provides  that it in event it is not  timely  repaid as due it can be  converted
into  restricted 144 Rule common stock of the company at the lowest quoted price
for the Company's  shares or the lowest  conversion  price or shares issuance by
the  Company  at the  discretion  of the  creditor.  In June  2003  the loan was
converted into common stock of the Company at the rate of $.01 per share.

The Company  borrowed  approximately  $187,000 from a shareholder of the Company
who is associated with Tiger Telematics,  Europe,  Ltd. The loan is evidenced by
non-interest  bearing  promissory  notes. That person became affiliated with the
Company in April 2004 as a Head of Investor Relations in an agreement  unrelated
to the above transactions.

Certain  additional  related party  transactions  occurred in following quarters
that are reported in Footnote K Subsequent events.

NOTE D - INCOME TAX MATTERS

The Company has net operating loss  carryforwards for United States Tax purposes
as of June 30,  2003 for federal  income tax  purposes  of  approximately  $13.5
million  expiring  in 2021.  Any future  benefit to be  realized  from these net
operating  loss and  contribution  carry  forwards is dependent upon the Company
earning sufficient future income taxable in the United States during the periods
that the carry  forwards are  available.  The loss carry  forwards  also contain
restrictions on the type of taxable income that they can be used to offset.  Due
to these  uncertainties,  the Company has fully offset any deferred tax benefits
otherwise  relating to the net  operating  loss carry  forward  with a valuation
allowance in the amount of approximately $4 million . The Company has losses off
settable  against future income in the UK of $3.5 million  expiring in 2021. Any
future  benefits to be realized  from the losses is  dependant  upon the company
earnings  sufficient future taxable income in the UK during the periods that the
losses off settable are available.  Due to these  uncertainties  the Company has
fully  offset any deferred  tax  benefits  otherwise  relating to the losses off
settable  against  future  income  with a valuation  allowance  in the amount of
approximately $800,000.

                                      F-11
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE E - NOTES PAYABLE

As of June 30,  2003,  the  Company  had a 10% note  payable  in the  amount  of
$53,834.

NOTE F - ACQUISITIONS.

TIGER TELEMATICS, LTD.

On February 4, 2002,  pursuant to a Stock Purchase Agreement between the Company
and Eagle Eye  Scandinavian  Distribution  Limited,  an English  private limited
company,  which  name the  Company  has  changed to Tiger  Telematics  (UK) Ltd.
("Tiger  Telematics"),  the Company  purchased all of the  outstanding  stock of
Tiger  Telematics in exchange for 7,000,000  shares of Floor Decor,  Inc. common
stock. Tiger Telematics is an early stage company engaged in the distribution of
telematics product.

The 7,000,000 shares of stock issued were valued at $0.40 per share.  This price
is the same price as the private placement transactions with investors that were
entered into from December 2001 through March 2002. This valued the stock issued
at $2,800,000. The negative equity of Tiger

                                      F-12
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Telematics  of  $463,050  as of the  acquisition  date  resulted in an excess of
acquisition cost over tangible asset value of $3,263,050.

The  excess of the  acquisition  price over the  tangible  asset  valuation  was
assigned to two intangible  assets.  $2,800,000 was ascribed to an order backlog
of open pending  orders for products for future  shipments over the next several
years.  This  amount  will be  amortized  as the orders are shipped on a prorata
basis.  The  remaining  amount of $463,050 was assigned to  distribution  rights
under a Distribution Agreement with Eagle Eye Telmatics, plc, which was executed
on October 19,  2001(see Form 10-K dated March 31, 2002,  exhibit  #21.1).  This
amount  will be  amortized  quarterly  over the 32 month  remaining  life of the
distribution agreement at the time of acquisition.

In third quarter 2002, the Company determined that the good will relative to the
order book was  impaired  due to the  failure  to ship the orders as  originally
projected to the customers and due to the change in Tiger Ltd.'s  business model
to derive its income from monthly  revenue  generated  by its  wireless  telecom
providers  partnership  arrangements as opposed to generating  revenue primarily
from the sale of hardwire.  The Company  wrote-off  $1,000,000  of impaired good
will in the quarter ended September 30, 2002.

In connection with this  acquisition,  the former Tiger Telematics  shareholders
agreed to convert  $610,190  of their  shareholder  debt into  Common  Stock and
warrants  to  purchase  common  stock at a price of $0.75 per share  exercisable
through December 31, 2003. The conversion rate was one share of common stock and
one warrant for every $0.40 of debt.  Although  initiated in August, the debt of
$610, 190 was actually converted in October 2002 into 1,525,475 shares of Common
Stock and 1,525,475 Warrants. The warrants expired in December 2003 and were not
exercised.  In December 2003 the Company sold the common stock of the Tiger Ltd.
Company to an  unrelated  third party based in Sweden that is in the business of
selling and installing telephone equipment in vehicle fleets. See Report of Form
8K dated January 2003.  The agreement  called for the transfer of certain assets
and debt from Tiger Ltd. to Tiger Europe prior to closing.  The  transaction was
done in exchange for a Royalty  Agreement from the buyer and Tiger Ltd. to pay a
percentage of sales over the next 10 years. Due to the uncertainty of the future
payments the Company placed a zero value on the agreement and did not record the
future stream of payments on the balance  sheet.  In order to record the sale of
Tiger Ltd.  transaction  the company wrote off its books the remainder  value of
the  intangible  assets  of  $2,103,830  comprised  of the  sold  order  book of
$1,800,000 and the sold distribution agreement of $303,830.

The  Company  was  advised  that Eagle Eye  Scandinavian  Distribution  Ltd.)the
renamed Tiger Telematics,  Ltd.) was placed in insolvency liquidation during 1st
quarter of 2003 by a certain  creditor of the Ltd.  company.  See note C Related
Party Transactions.  No provisions have been made to the financial statements as
a result of this action since the company did not record the  receivable  on the
balance sheet as noted above.

                                 COMWORXX, INC.

On June 25, 2002,  pursuant to a Purchase Agreement between the Company's wholly
owned  subsidiary  Tiger  USA,  Inc  and  Comworxx,   Inc.,  a  private  Florida
incorporated  company, the Company formed a new wholly owned subsidiary Comworxx
Acquisition Corporation which name the Company has changed post closing to Tiger
Telematics USA. ("Tiger USA").  Tiger USA purchased all of the assets of Comworx
in  exchange  for  4,263,266  shares of Tiger  Telematics,  Inc.  common  stock.
Comworxx was an early stage  company  engaged in beginning the  distribution  of
telematics  product  to the  United  States  consumer  market.  Comworxx  assets
included license agreements and intellectual properties.

Pursuant to the terms of the purchase  agreement the  4,263,266  shares of stock
issued were valued at $1.00 per share;  provided  however  that if the price per
share of Tiger  Common  Stock sold in the next equity  financing in Tiger Raises
gross  proceeds  of at least $3 million is less than $1.00 per share the assumed
purchase  price  shall be  reduced  to the price  per  share in the next  equity
financing and provided  further however that is the new equity  financing is not
consummated by September 1, 2002 the assumed price shall be reduced to $.035. If
the purchase price is reduced to less than $1.00 per share of Tiger Inc.  common
stock.  Tiger will have to issue such additional shares as necessary so that the
total number of shares of Tiger Common Stock issued  pursuant to this provision,
is equal to the quotient,  rounded to the nearest  whole  number,  of $4,263,266
divided by the final assumed  purchase price.  The maximum number of shares that
would be issued under this formula  would be  12,180,760.  The Company  recorded
this transaction as if the maximum number of shares will be issued, resulting in
the recording of 7,917,494  contingent  shares. The Company valued the shares at
$.25 per share,  which was the trading  price at the date if purchase,  giving a
purchase  price of  $3,045,190.  Based on a post  acquisition  review  of assets
reserves were made to inventory, receivables and property plant and equipment to
equal the current  estimated  value as of the  acquisition  date.  The  reserves
created an additional  excess of  liabilities  over tangible  assets.  The total
excess of liabilities over tangible assets of Comworxx  acquired  resulted in an
additional good will of $669,628.

                                      F-13
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The  excess of the  acquisition  price over the  tangible  asset  valuation  was
assigned  to  three  intangible  assets.   Although  the  acquisition   included
intellectual  property  and  license  agreements  due  to  the  position  in the
marketplace and funding issues  associated with the acquisition,  agreements the
Company believes that the good will is impaired as of June 30, 2002. The company
wrote off all of the goodwill of  $3,714,818 in the quarter ended June 30, 2002.
The Company believes that the seller of the assets may have  misrepresented  the
nature of the assets and the viability of the associated business at the time of
the transaction.  As a result the Company has retained independent legal counsel
to advice it of its rights  against  the  shareholders  of the seller to recover
certain sums or to rescind the entire  transaction.  The Company does not intend
to issue the contingent shares referred to above until a final determination has
been made as to the potential  causes of action against the seller.  The company
has entered  into  substantial  discussions  with  ComRoad  from time to time as
respect to a settlement of all outstanding obligations claims and counter claims
as noted in Note K Subsequent Events.

NOTE G.    LEASE IN THE UK

On April 26, 2002 the company  entered into a Lease Agreement with Christian and
Timbers UK Ltd. for office premises for its subsidiary  Tiger Telematics Ltd. in
London,  United  Kingdom.  The lease has a term of five years.  The Company will
satisfy its  obligation  to pay rent for the first year of the term of the lease
by  issuing  500,000  shares of Floor  Decor's  Common  Stock.  If the  Landlord
liquidates  the  Shares  in the  first  year of the  term of the  Lease  and the
aggregate  net  proceeds  of sale  arising  from such sale or sales is less than
(pound)126,018.75 (or the US Dollar equivalent using the mid range exchange rate
prevailing  on the date of actual  receipt of the said  proceeds  of sale by the
Landlord) the Tenant shall forthwith pay to the Landlord the difference  between
(pound)126,018.75 and the said proceeds in cash. The second and subsequent years
of the term of the lease shall be paid in cash.  The company  has  recorded  the
full amount due for the first year of the lease as a liability of $182,636 based
on the conversion  rate the date the lease was  consummated.  The 500,000 shares
issued to them are not considered issued for financial  reporting purposes until
such time as they are actually sold into the market by the landlord or until the
liquidation  guarantee is expired.  These shares of commons  stock have not been
sold as of the date of this  report  have not been sold.  In  December  2002 the
Company sold the Tiger Ltd.  company.  The sold company Tiger Ltd.  subsequently
defaulted  on the lease  arrangement  with  Christian  and  Timbers who sued the
Company  pursuant to the guarantee in the summer of 2003. The Company retained a
provision  on the balance  sheet as of June 30, 2003 for $300,000 to reflect its
best estimate of the obligation.

In October 2003 the company entered into a judgment  stipulation for $300,000 to
settle all obligations under the guarantee.  The Company has made payments under
the obligation in 2004

                                      F-14
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE H - SEGMENT INFORMATION

During  the first  nine  months of 2002 the  Company  operated  in the  flooring
business in Florida,  (including the period of first six months of 2002),  now a
discontinued   operation  and  in  the  telematics   product   development   and
distribution business in Europe.

     o    Flooring Retail and Installation- now a discontinued operation
     o    Telematic product development and distribution

The  accounting  policies  of the  reportable  segments  are the  same as  those
referred  to  in  Notes  A.  In  June  6,  2002,   the  company   announced  the
discontinuation  of the  flooring  segment  and sold the assets of the  flooring
business on August 9, 2002.  As a result the company is not  disclosing  segment
information  as it has only one segment in Telematics  product  development  and
distribution.

NOTE I - DISCONTINUED OPERATIONS:
In June  2002  the  Company  entered  into a plan  to  dispose  of its  flooring
business.  The flooring  business was subsequently sold on August 9, 2002. As of
June 30, 2002, the Company  accounted for the flooring segment as a discontinued
segment.  Assets of 0 and  liabilities  of  $1,090,474  relating to the flooring
business as of June 30, 2003 have been aggregated on the condensed  consolidated
balance sheet.

A summary of the assets and  liabilities  as of June 30, 2003 and  December  31,
2002 is as follows:

Assets:                              June 30, 2003        December 31, 2002
                                   -----------------      -----------------
  Accounts receivable              $            --        $         517,210
                                   -----------------      -----------------
    Total assets                   $            --        $         517,210
                                   =================      =================
Liabilities:
  Notes payable                    $            --        $         273,763
  Accounts payable contingent                418,474                575,000
  Other accruals                             672,171                724,092
                                   -----------------      -----------------
                                   $       1,090,474      $       1,572,855
                                   =================      =================



                                      F-15
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenue included in loss from discontinued operations amounted to $2,163,158 and
$3,777,000 and $298,000 for the twelve months ended December 31, 2002,  2001 and
2000 respectively.

On August 9, 2002, the Company sold its flooring  business to a purchasing group
headed  up  by a  former  officer  of  the  Company.  The  Company  sold  assets
aggregating   $1,152,698,   and  had  the  buyer  assume  liabilities   totaling
$1,243,135.  The Company will remain  theoretically  contingently  liable on the
liabilities  until such time as the  acquirers  pay them off. In  addition,  the
purchaser has assumed two non balance sheet operating  leases for buildings with
annual rents of approximately $459,480 a year that were assumed without landlord
consents.   These  leases   expire  August  31,  2005  and  September  30,  2005
respectively.  Should the purchaser not meet these obligations they might become
the obligations of the company.  A former  shareholder and former officer of the
company,  who has since  filed a  personal  Chapter  11  bankruptcy,  personally
guaranteed  these  leases.  As of  December  31,  2003 the  accounts  receivable
$633,475  represents  the  obligation  of  the  acquirer  to pay  the  remaining
liabilities  of  discontinued  obligations  that were  assumed and for which the
company  is  contingently  liable.  Due to the  bankruptcy  of the  buyer of the
assets,  the Company made a provision  for $383,475  for the  write-down  of the
receivable  from MINIME that  represented  payments to  creditors  for which the
Company  may be  contingently  liable.  The company  also made a  provision  for
$376,292 and for  $295,879  for the two leases that were assumed by MINIME.  The
total  provision was for  $1,055,745 in year ended December 31, 2002 The Company
is  uncertain  as to its  liability  since  one of the  leases  and  most of the
outstanding  obligations for payables are to a subsidiary of a subsidiary of the
Company. On April 9, 2003 the buyer of the flooring assets MINIME doing business
as Floor  Decor  LLC.  Filed a Chapter  11  bankruptcy.  On April 17,  2003 they
conducted a Bankruptcy  Court  authorized  liquidation sale of the assets of the
business.  As of April  30,  2003  they  ceased  operation  and are no longer in
business.  In June 2003 the bankruptcy court dismissed the case since all assets
of the entity had been  disposed of  pursuant to  bankruptcy  court  order.  The
provision  represents the remaining  amounts due under the lease  agreements for
which the company  may be  contingently  liable  despite  the  protections  from
liability provided in the Asset Purchase Agreement. As a result of the dismissal
of the bankruptcy case the company believes that it has no further liability for
the accrued  leases but  continues to maintain the reserve until such time as it
can obtain a legal opinion as to the same.

This was after the  liquidation  of MINIME  and the Floor  Decor  LLC.  paid off
certain  creditors.  The  provision was adjusted to the best estimate of amounts
based on records  available to the Company.  The  $1,090,645  represents the two
aforementioned  leases  and  other  unpaid  obligations  of the  LLC to  various
creditors.  The  dismissal of the case may free the Company from any  contingent
liabilities in the case.  The Company  believes that it is not  responsible  for
these   obligations   but  has  retained  the  provision  for  these   potential
liablilities  until it can be assured of the same.  The Company is carrying  the
contingencies  until such time it can settle  with the  parties or pass the time
for which it  obligations  remain owed  contingently.  In See note K  Subsequent
Events.

Revenue  included  in  loss  from  discontinued  operations  amounted  to $0 and
$1,815,056 for the three months ended June 30, 2003 and 2002 respectively.


                                      F-16
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE J - BUSINESS CONSIDERATIONS

For the year ended  December 31, 2002,  the Company  incurred net losses of over
$13  million . For the  first six  months of 2003,  the  losses  were  $939,000.
Although  approximately  $7  million  of the loss in 2002 was from the  non-cash
write-down  of impaired  good will,  the Company  had  negative  cash flows from
operating  activities  for the year ended  December 31, 2002 and  negative  cash
flows from the operations  although the cash flow from operating  activities for
the first six  months  of 2003 of  $285,499  although  improving  in the  second
quarter 3003 due to a reduction in assets and an increase in liabilities..

The negative cash flows from  operations,  as well as the costs  associated with
the Tiger Telematics Ltd.  acquisition and the acquisition of assets of Comworxx
further strained the Company's cash flow in 2002. Since the Company was not able
to generate  positive  net cash flows from  operations,  additional  capital was
needed. During 2002 the Company entered into private placement transactions with
individual investors. In these private placement transactions,  the Company sold
shares of its common  stock and  warrants  to raise  approximately  $876,000  of
equity, as disclosed in note C. During the same period,  stockholders  converted
approximately  $923,000 of debt into equity of the Company.  Stockholders of the
company  continued to support the operation  with  substantial  loans to sustain
operations as reported and note C.

Additional  shares  were  issued  in the first  six  months  of 2003 to  sustain
operations  and in the  remaining  quarters  since then,  see Note K  Subsequent
Events.  The issuance of the common shares  permitted  raised funds and obtained
goods and services  that  continued the  operations of the Company.  The Company
continually  monitors  operating costs and will take steps to reduce these costs
to improve cash flow from  operations if necessary.  The Company is  continually
seeking sources of new capital to aid the  implementation  of its business plan.
The fund  raising of $10 million  that the company was seeking via  Jefferies in
late 2002 was not successful.  The Company has continually  raised funds in 2003
from the  issuance  of common  stock  shares see not K  Subsequent  Events.  The
Company  continues  to seek  equity and bank  financing  from  various  sources.
However,  there can be no assurance that additional financing,  capital or other
form of debt  financing will be available,  or if available on terms  reasonably
acceptable to the Company. The company continued to issue shares of Common Stock
in first six  months of 2003 and up to the date of this  filing in April 2004 to
settle obligations due for payment and to secure necessary services.

The Company plans to continue the product development and distribution  business
in the UK. This is going forward as planned but slower than anticipated due to a
lack of funding.  The Company is concluding  development of its next  generation
fleet  product and its new GPS  products  including  Gametrac  recently  renamed
Gizmondo.  The  company  has  mothballed  and then  disposed  of the  assets and
business of its  acquired  assets of Comworxx  (acquired on June 25, 2002 by the
wholly owned  subsidiary  Tiger USA. It no longer plans to launch these products
due to the high  related  cost of the product  relative to the  projected  sales
price available for such products in the U.S. consumer retail  marketplace.  The
Company wrote off its entire  investment in the purchase  agreement in 2002. The
Company  hired legal  counsel to advise its rights and causes of action  against
the seller of the assets and its shareholders possible misrepresentations in the
purchase agreement that a viable business existed.  The Company has entered into
substantial serious negotiations with the sellers and continues actively in such
discussions.

The Company's  ability to continue as a going concern is totally  dependent upon
its  ability to raise  sufficient  equity or debt  capital to  accomplish  these
objectives and to offset any future  operating losses that may be incurred until
positive cash flows can be generated from  operations.  In the current  economic
environment this has not been easy task.  Management intends to raise capital by
issuing  shares as required to fund working  capital needs although there are no
assurances of success.


                                      F-17
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE K. -  SUBSEQUENT EVENTS.

Below is the summary of major subsequent  events since the June 30, 2003 date of
the  financial  statements  included  herein to the date of this filing in April
2004.  It is not  inclusive  of all events but  represents  selected  major ones
deemed appropriate to provide information in this report.

1. Equity  transactions.  Common  shares  issued for goods and  services and for
financing the company's working capital needs.

In third  quarter,  2003,  the  Company  issued  1,700,000  shares for goods and
services at the market  rate of $.02 per share at the time  issued and  expensed
$34,000 for the  services.  The Company  issued  22,940,327  in common shares in
private placement  transactions to qualified  investors of strategic partners or
providers of services and goods to the Company to rise as converted into dollars
from  sterling  $600,889  for use  primarily  in its UK  subsidiary  for working
capital and product  development  expenses.  The shares were issued  pursuant to
subscription  agreements to sophisticated or accredited or foreign  investors or
foreign  corporations  at per share prices  ranging from $.01 to $.04 per share.
The shares  were  recorded  as the market  price of the stock at the time of the
transaction or at the rate agreed to in the respective agreement if appropriate.
In some  instances due to the timing of the receipt of funds and the  associated
bank confirmations required from the subsidiary prior to issuing the shares, the
shares may be issued in a quarter following the actual receipt of funds as shown
on the financial statements.

In fourth  quarter,  2003,  the Company  issued  4,537,500  shares for goods and
services  at the  market  rate of $.02 to $.05 per share at the time  issued and
expensed $142,875 for the services. $100,000 of the services related to advisory
services in the UK related to some of the share  subscription  agreements issued
below.  The Company  issued  29,514,300  in common  shares in private  placement
transactions  to  qualified  investors  of  strategic  partners or  providers of
services and goods to the Company to raise cash as  converted  into dollars from
sterling  $1,503,997 for use primarily in its UK subsidiary for working  capital
and product  development  expenses.  In some  instances due to the timing of the
receipt  of  funds  and the  associated  bank  confirmations  required  from the
subsidiary  prior to issuing the  shares,  the shares may be issued in a quarter
following the actual receipt of funds as shown on the financial statements.  The
Company  raised an  additional  $1,600,000  in late 4th quarter for which shares
were not issued  until after year end 2003.  The shares were issued  pursuant to
subscription  agreements to sophisticated or accredited or foreign  investors or
foreign  corporations  at per share prices  ranging from $.01 to $.05 per share.
The shares  were  recorded  as the market  price of the stock at the time of the
transaction or at the rate agreed to in the respective agreement if appropriate.
The company  converted  debt to holders  unrelated  to the Company in any way in
separate agreements with the respective parties for 851,300 shares or $36,027 of
debt at a rate  ranging  from$.02  to $.05 as  negotiated  with  the  respective
parties who were represented by independent counsel.

In 1st quarter, 2004, the Company issued 10,585,000shares for goods and services
at the market  rate of $.02 to $.05 per share at the time  issued  and  expensed
$305.383 for the services. Five million of the shares were issued to an employee
of the  Gametrac  subsidiary.  $125,000  of the  services  related  to  advisory
services in the UK related to some of the share  subscription  agreements issued
below and were issued to a  stockholder  who is  currently a  consultant  to the
Gametrac Europe Ltd subsidiary.  The Company issued  58,053,778 in common shares
in private placement  transactions to qualified  investors of strategic partners
or  providers  of services  and goods to the Company to raise cash as  converted
into dollars from sterling $2,977,833 for use primarily in its UK subsidiary for
working  capital  and  product  development  expenses.  The shares  were  issued
pursuant to subscription  agreements to  sophisticated  or accredited or foreign
investors or foreign  corporations at per share prices ranging from $.03 to $.20
per share. The shares were recorded as the market price of the stock at the time
of the  transaction  or at the rate  agreed to in the  respective  agreement  if
appropriate. There was also a debt conversion of $45,000 greed to in 4th quarter
2003 and  completed in January  2004 for the  issuance of 1,125,000  shares at a
negotiated sum of $.04 per share. The Company raised an additional $1,500,000 in
first  quarter  2004  which  was   contributed  to  the  Company  by  two  large
shareholders who sold their share position in private transactions for which the
Company  entered  into an to replace the shares at the same per share price that
the firms  sold  their  shares  of the  Company  to  various  unrelated  private
investors.


                                      F-18
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As to all recent sales of unregistered  securities at the time of each issuance,
each investor or recipient of  unregistered  securities was either an accredited
investor  or a  sophisticated  investor  or a foreign  investor  exempt from the
Securities Acts requirements. Each had access to financial information available
in public  markets and was offered the  opportunity to review any documents that
they requested prior to making said investment.

2. Tiger Telematics - Loans from stockholders.

During the fourth  quarter of 2003 the company  converted  the then  outstanding
debt to stockholders of the UK Ltd.  company to common stock at the rate of $.02
which  was the  market  price  of the  common  stock  as of the  date  that  the
agreements  were entered into in August 2004 with the numerous  debt holders for
debt of (pound)886,000 at the time converted at 1.58 to $1,400,000.  The Company
issued  70  million  shares of common  stock in the  conversion  of this debt to
common stock. The debt conversion  negotiated  based on arms length  transaction
did involve  certain  officer and  directors  of the Company and or its Gametrac
Europe Ltd subsidiary. In addition the Company converted certain additional debt
owed to a non-officer non director  shareholder whom the Company was indebted to
for  (pound)143,500  converted  at 1.58 to $226,730 and issued at $.02 per share
11,336,500  million  shares of its common stock.  That person became  affiliated
with the Company in April 2004 as a Head of Investor  Relations  in an agreement
unrelated to the above transactions.

3 .Shareholder approval of increase in authorized share capitalization.

At  a  stockholders   meeting  as  (properly  adjourned)  on  January  16,  2004
shareholders of the company approved an increase in authorized shares authorized
by an additional 250,000 shares from 250,000 shares to a new total authorized of
500 million shares effective as of that date.

4. Press releases on product development progress,  strategic partners and other
developments of the Company.

In order to accomplish  the difficult  task of converting the Gametrac idea into
an actual  product,  the Company  over the past seven  months,  has entered into
several  strategic   partnerships  with  some  of  the  most  reputable  design,
engineering,  software,  manufacturing,  and public  relations  companies in the
world.  Below is a  compilation  of  strategic  relationships  that the  company
announced in various public press releases since third quarter 2003 to date.

In the third quarter 2003 the Company entered into a joint venture with Plextek,
one of the largest independent electrical design and consulting firms in the UK.
Within weeks, a strategic partnership was formed with Synergenix Interactive AB,
regarding the use of Morphum games on Gametrac's mobile gaming platform.

The  Company  entered  into a  strategic  partnership  with  Intrinsyc  Software
International,  a Microsoft Gold Level Windows Embedded Partner,  and elected to
utilize Windows CE.NET as Gametrac's  operating  system.


                                      F-19
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Working  together  with  Xilinx,  another  huge  firm  that's  widely  respected
throughout  the  electronics  industry,  Plextek and Intrinsyc  produced for the
Company the initial  Gametrac  units that were  displayed  at the 2004  Consumer
Electronics Show in Las Vegas in January 2004.

The Company announced  collaboration with Fathammer Alliance, a leading supplier
of advanced 3D graphics and game technologies for mobile platforms,  a move that
that  the  Company  believes  will  assure  that  the  quality  of the  games is
consistent with the quality of the device.

A strategic partnership between the Company and MINICK was announced. MINICK has
already  built one of the largest  premium  messaging  networks  in Europe,  and
operates  its own SMS & MMS centers that  connect  directly to mobile  networks.
This  partnership  sets the stage for Gametrac  units serving as a platform that
allows the Company's Smart Advertising (Smart Adds) service.

Then  in late  February  2004  it was  announced  that  Gametrac  will be  using
Samsung's  world-class  S3C2440  Mobile  Applications  Processor.   The  Company
believes  that  Samsung,  known  for its  distinguished  multimedia  and  gaming
experience,  was an  excellent  addition  to the team and will help  assure that
Gametrac's performance remains one of the fastest on the market.

In early March the Company announced its plans to use a cutting-edge audio IC, a
single  chip  MIDI  synthesizer,  that's  made  by  respected  audio  specialist
Micronas,  a move that will provide  Gametrac units with notably  superior audio
quality.

The Company  announced its  attendance at industry  shows where the new handheld
device has been displayed  including  CeBit in Hanover Germany in March 2004 and
the yet to be held E-3 in Los Angeles in May 2004.

In March  2004 the  Company  created  a new  wholly  owned  Delaware  subsidiary
Gametrac USA Inc. to handle future  marketing and potential  distribution if and
when the Company determines to launch the product in the United States. The unit
has not been made operational to date.

On the production front, the Company announced in mid-December that Celestica, a
huge  and  respected  worldwide  leader  in  delivering  innovative  electronics
manufacturing  services  (EMS),  will be providing  Gametrac with  manufacturing
services.

In late March 2004 the Company signed an agreement with CATIC, a giant State-Run
Chinese  conglomerate,  which  involved  "...  sales,  distribution,   technical
support, and numerous other joint ventures for all Chinese regions,"

In  early  April  the  Company  announced  that it had  selected  Ogilvy  Public
Relations Worldwide as its Agency of Record. Ogilvy currently represents some of
the most  reputable  companies in the  consumer-oriented  electronics  industry,
including but not limited to Cisco, Dell, HP, Microsoft, NCR, Oracle and Xilinx.

In May 2004,  the Company has plans to display its product at the industry trade
show E-3 show in Los Angeles,  California from May 12-14,  2003. It has expended
funds to date on the  display and plans  attendance  by  approximately  10 staff
members of the company.

The  Company has some funds  expended in  developing  several  related  concepts
associated with marketing its Gizmondo device related to game development, music
and film. The Company has also negotiated for potential  acquisitions of related
entities involving game development and modeling but no definitive  arrangements
have yet been agreed to. The Company has entered  into an agreement to sponsor a
formula one driver as a part of marketing the Gizmondo,  which will be announced
in the  near  future  when  all  aspects  of the  agreement  are  concluded  and
finalized.

                                      F-20
<PAGE>

                     TIGER TELEMATICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5.  Litigation.

In March 2004 Jordan  Grand Prix Ltd.  filed suit  against the Company in the UK
alleging violation of the Sponsorship Agreement entered into between the Company
and Jordan Racing in July 17, 2003 and a related Letter  Agreement dated in July
2003. The  sponsorship  agreement was meant to assist in marketing the companies
new hand held gaming  device and to correspond  with its launch.  The launch was
delayed from its anticipated time frame.  Jordan sued the Company for $3 million
and alleges  that the Company  defaulted  in a payment due on January 1, 2003 of
$500,000 under the  sponsorship  agreement and a payment for $250,000 due on the
same date under a separate  letter  agreement.  On February 26, 2004 Jordan sent
the  Company  a letter  where  they  formally  and  officially  terminated  both
agreements for the aforementioned alleged defaults. The Company believes that it
has good  defenses  to the suit and has  filed a  defense  in UK  courts  and is
considering  filing a  countersuit  against  Jordan  Racing in the matter in the
upcoming  months.  The  Company is  contemplating  the  filing of a  countersuit
against the plaintiff.  The Company anticipates a filing for Summary Judgment by
the  plaintiff.  If the  judge  finds  in favor of the  plaintiff  an  immediate
judgment  against the Company for some amount would occur. The Company is unable
to predict the outcome of such litigation. As no amounts were due as of the date
of these  financial  statements,  no  provision  has been made on the  financial
statements for this litigation.

In March 2004, the Company and it's Gametrac Europe Ltd. subsidiary were sued in
the UK in a  trademark  infringement  suit by IN 2 Games Ltd.  to  recover  over
(pound)150,000  alleging  that  the use of the  project  name  Gametrac  for its
multi-entertainment  handheld  device  that  is in  development  and  the use of
Gametrac in the name of the subsidiary was an infringement  on their  registered
trademark in the UK "Gametrak". The company contested the suit and anticipates a
speedy  resolution as it agreed to a trial currently  scheduled to begin May 24,
2004 in an agreement  between it and In2 Games Ltd.  approved by the court.  The
Company had previously  planned to announce the name of its new device in May at
E-3 show in LA but went  forward and  announced  the new name  Gizmondo in April
2004.  The  company  has also taken  steps to remain the  Gametrac  Europe  Ltd.
subsidiary  to Gizmondo  Europe Ltd. The company  anticipates  that with the new
product name change announcement and its step to rename the subsidiary in the UK
that it will be able to resolve the  litigation on an amicable basis although no
assurances can be given. No provision has been made on the financial  statements
for the litigation.




                                      F-21
<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

This report contains  forward-looking  statements  within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 23E of the Securities
Act of 1934,  as amended.  These  statements  relate to future  events or future
financial  performance.  Any  statements  contained  in this report that are not
statements of historical fact may be deemed to be forward-looking statements. In
some cases,  forward-looking statements can be identified by terminology such as
"may," "will," "should," "expect," "plan,"  "anticipate,"  "intend",  "believe,"
"estimate,"  "predict," "potential" or "continue," or the negative of such terms
or other comparable terminology.  These statements are only predictions.  Actual
events or results may differ materially.

Although  the  Company   believes  that  the   expectations   reflected  in  the
forward-looking  statements are reasonable,  the Company cannot guarantee future
results, levels of activity, performance or achievements.  Moreover, neither the
Company, nor any other person or entity, assumes responsibility for the accuracy
and  completeness  of the  forward-looking  statements.  The Company is under no
obligation to update any of the  forward-looking  statements after the filing of
this Form 10-Q to conform such statements to actual results or to changes in the
Company's expectations.

The  following  discussion  should  be read in  conjunction  with the  Company's
financial  statements,   related  notes  and  the  other  financial  information
appearing  elsewhere  in this Form 10-Q.  Readers  are also  urged to  carefully
review and consider the various disclosures made by the Company which attempt to
advise interested parties of the factors which affect the Company's business.

General

Overview

In May of  2001  the  Company  completed  a  reverse  shell  merger  with  Media
Communications  Group, Inc.  ("MCGI").  Prior to the acquisition of Floor Decor,
MCGI was a "public shell" company, with no significant operations or assets. The
acquisition of Floor Decor was accounted for as a reverse  acquisition.  Under a
reverse  acquisition,  Floor Decor is treated for accounting  purposes as having
acquired MCGI and the historical  financial statements of Floor Decor become the
historical  financial  statements  of MCGI.  Therefore,  all  references  to the
historical activities of the Company refer to the historical activities of Floor
Decor. Floor Decor changed its name to Tiger Telematics, Inc. on June 6, 2002.

Tiger  Telematics,  Inc. ("Tiger  Telematics" or "the Company"  previously named
Floor  Decor,  Inc.) is the parent  company of several  subsidiaries.  The first
subsidiary,  Media Flooring,  Inc., operating through its subsidiary Floor Decor
LLC, operates a flooring products sales and service business,  which represented
all of the business operations of the Company during 2001. The company announced
the  discontinuation of the flooring segment on June 6, 2002 and sold the assets
on August 9,  2002.  On  February  4,  2002,  the  Company  acquired  its second
subsidiary,  Tiger  Telematics  LTD, a UK company,  which  develops and provides
telematics products and services to the business-to-business  segment in Europe.
On June 29, 2002 the company set up its third  subsidiary  Tiger Telematics USA,
Inc. and it acquired  the assets and certain  liabilities  of  Comworxx,  Inc. a
Sarasota,  Florida based entity that provides telematic products and services to
the business to consumer segment in the United States.  That business  suspended
operations and disposed of its assets in 2nd quarter of 2003. . In December 2003
the Company sold Tiger Ltd. And started Tiger Europe Ltd. to develop  Telematics
and related products using the GPS function.  Tiger  Telematics  Europe Ltd. was
renamed  Gametrac  Europe Ltd. in the first six months 2003 and has filed in the
UK to change its name again to Gizmondo Europe Ltd.


Telematics

On February 4, 2002, the Company  acquired Eagle Eye  Scandinavia  Distribution,
Ltd, and changed its name to Tiger  Telematics  Ltd. The  consideration  paid in
this  transaction  consisted  entirely of shares of the Company Common Stock, as
was  reported in the  Company's  Current  Report on Form 8-K dated  February 19,
2002.  The  business  was sold in  December  2002 but the company set up another
Company Tiger Europe Telematics, Ltd (rename Gametrac Europe Ltd. to continue to
develop and market telematic products.

<PAGE>

Gametrac  Europe Ltd. is an early stage company  engaged in the  development and
distribution of telematics and related products.  Telematics  products allow the
wireless exchange or delivery of communication,  information,  and other content
between a vehicle and its  occupant,  and external  sources or  recipients.  The
telematics   industry  aggregates  the  functionality  and  content  of  various
industries including consumer electronics,  cellular and security devices, among
others, into a seamless service offering.

On June 25, 2002 the company created a wholly owned subsidiary Tiger Telematics,
USA, Inc. that acquired the assets and certain  liabilities  of Comworxx Inc. as
disclosed in the note G to financial statements. That subsidiary is currently in
a dormant state having disposed of the business and assets of the unit.

The  Company's  primary  focus  beginning in third  quarter 2003 has been on the
development of a new handheld  wireless  product  project name Gametrac that was
recently renamed Gzmondo.  In additional to being an exceptional  gaming device,
Gizmondo  also performs the  following  functions:  It serves as a movie player,
allowing  users to view  full-feature  videos using the unit's  built-in SD Card
slot; it functions as an MP3 player  permitting  users to download,  store,  and
listen to select audio files;  it's an SMS & MMS  messaging  facility  that lets
users  easily  send  text,  image,  and  music  files;  and it  sports  a  neat,
high-resolution digital camera.

Gizmondo's also equipped with a unique global positioning system; it's wired for
GSM tri-band networks so it can be used in 5 continents;  it supports  Bluetooth
wireless capabilities,  which allows not only multi-player competition, but also
makes connecting to any enabled device a snap; it has UBS capabilities; and with
its removable memory cards, it provides users with unlimited storage.

In addition to having more features than any competing  units,  Gizmondo's  also
equipped  with a 400  MHz  Samsung  processor  and a  built-in  64-bit  graphics
accelerator  and, it's the only mobile gaming unit that uses  Microsoft  Windows
(CE.NET) as its operating system.

The  Company  anticipates  bringing  the  Gizmondo  product to the market in the
summer of 2004 although  assurances  can be given.  The coming is focused on the
rapidly  growing  mobile  gaming  industry,  at this  point it's  impossible  to
reference any industry averages or trend rates because it's such a new industry.
At present,  it appears Gizmondo's primary competition will come from Sony's new
PSP and  Nintendo's  new  dual  screen  unit  called  DS.  Another  smaller  but
noteworthy  industry member is Tapwave,  with its PDA-like Zodiac models,  which
have mobile gaming  capabilities.  And Nokia with its gaming cell called N-Gage,
which Nokia is reportedly to re-design and eventually re-introduce.

And while Sony and Nintendo  remain as truly  formidable  competitors  with much
more assets and capital then the  Company,  the Company  anticipates  for a much
earlier launch date than either one of them.

Three  months-ended  June 30, 2003  compared to the three  months ended June 30,
2002

Below is a summary of the results of the company for the three months ended June
30, 2003 compared to the three ended June 30, 2002.

Net Sales:  The Company's net sales were $(9,297) in the three months ended June
30,  2003,  compared  to $1,063  for the same  period  in 2002  from  continuing
operations.  This is  principally  due to not  having  unit  sales from the sold
entity  of  Tiger  Ltd.(sold  in  December  2002)  that  reported  sales  in the
comparable  period of the three months ended June 2002. The 2003 period included
some returns of units from  trials.  With the new start up Tiger Europe Ltd. the
company was focused in second  quarter 2003 on building its next  generation  of
product with enhanced features and in developing  accounts and completing trials
in the rental car business areas. In first quarter 2003 trials were under way at
a rental car a concern that was completed in second  quarter 2003.  Those trials
were  concluded  successfully  in second  quarter  2003 but a  contract  was not
received from the enterprise.

Gross Profits:  Gross profits were $(10,310) for the three months ended June 39,
2003  compared  to $40,562  for the same three  months of 2002.  The  telematics
products reported negative gross profits as part of the initial strategy used to
introduce its new product in the marketplace.  The company expended funds in the
three months ended June 30, 2003 in the development of an improved fleet product
with  enhanced  features.  The Company also made an initial  investment in a new
child tracker  product that was abandoned  later in 2003 when the focus switched
to gaming handheld entertainment device.

<PAGE>

Selling Expenses: Selling and marketing expenses for the three months ended June
30, 2003 were $18,659  compared  with $124,758 for the same time period in 2002.
Much of the $106,099  reduction can be  attributed  from not having the costs of
the  divested  Tiger Ltd.  which was in the numbers for the same quarter of 2002
and the transformation of the company into a development concern with a focus on
primarily product  development and selling to rental car concerns.  Most of this
actual cost in second  quarter  2003 related to the  establishment  of potential
orders for rental car Telematics products and a UK based motor bike company that
produced motor bikes in China.

General and Administrative Expenses: General and administrative expenses for the
three months ended June 30, 2003 were  $387,875  compared to  $2,024,758 or down
over $1,635,883. This decrease came from the lower costs with the divestiture of
Tiger ltd. in December 2002 and the associated  staff  reductions from the sale.
In order to further reduce  expenditures the Company downsized and relocated its
corporate  office in late 2002 and continued to operate at a reduce cost rate in
2003 second  quarter as  compared to the same time period in 2002.  Expenditures
have been made in  developing  several  new  products  including  Child  Tracker
devices (since  terminated) and gaming handheld devices.  All of these costs are
expensed as incurred and are not capitalized for financial  reporting  purposes.
$11,680 was expensed in second quarter 2003. The Company anticipates an increase
in its general  and  administrative  expenses  in future  periods as part of its
product development strategy.

Other  Expenses:  Other  expenses  for the three months ended June 30, 2003 were
$52,322 as compared to  $(3,773,609)  for the three  months ended June 30, 2002.
Most of the  reduction was due to not having the  impairment  of goodwill  write
down that took  pace  during  the  first  six  months  of 2003.  Other  expenses
consisted  of  interest  expense on loans of $13,618  and  currency  translation
adjustments of a positive $65,940. The currency translation adjustment accounted
for virtually all of the increase in this category and is due to the drop in the
dollar currency  relative to the sterling since the acquisition of Tiger Ltd. in
February 2002 and carrying  foreign based assets on the balance sheet.  Interest
in the three  month  period  ended June 30,  2003 of $13,379 is $2,645  lower or
about 16% less than in the same three  months of 2002 as the  company  converted
certain interest bearing debt to common stock during the 4th quarter of 2002.

Net Loss from continuing  operations:  The Company reported an operating loss of
$359,969 in three month period ended June 30, 2003  compared to  $6,127,727  for
the same  time  period in 2002.  The loss was lower due to the costs  associated
with the divested Tiger Ltd. no longer included in operations  since it was sold
and the cost reductions undertaken in late 2003. Management does anticipate that
its losses in future  quarters will grow  materially as it expenses  development
cost for its new  products  of GPS and gaming  device  Gizmondo.  The  Company's
management  staff has been right sized and has expertise and  infrastructure  to
grow the Company rapidly.  Management  considers these costs as an investment in
setting the Company in a position to grow rapidly in the near future.

Net  Loss  from  discontinued  operations:  The  Company  reported  a loss  from
discontinued  operations  of $0 in the  three  months  ended  June  30,  2003 as
compared to a $164,046  loss in the same time period in 2002. On August 9, 2002,
the company sold the assets of the flooring segment effectively eliminating that
segment going forward from that date.

Net Loss:  The Company  incurred a total loss of $359,969  for the three  months
ended June 30, 2003 as compared to a loss of $6,127,727 for the comparable three
months  of  2002.  The  large  difference  of  nearly  $5,768,000  reduction  is
attributed  the  divestiture  of Tiger Ltd.  and not having its losses in second
quarter  2003  results  and the cost  reductions  taken in late 2002 that helped
results for the second quarter of 2003. There will be no discontinued  operation
impacting  2003  going  forward.  The UK  subsidiary  will  incur  costs  in the
development  of its new products and in marketing its Telematics  products.  The
anticipates that future net losses per quarter will be considerable  higher then
in  first  quarter  as  the  company   increases  the  expenditures  in  product
development for Gizmondo and marketing in moving products to the market.

<PAGE>

Six months ended June 30, 2003 compared to the six months ended June 30, 2002

Below is a summary of the results of the  company for the six months  ended June
30, 2003 compared to the six ended June 30, 2002.

Net Sales:  The  Company's net sales were $(8,247) in the first six months ended
June 30, 2003  compared  to $29,583 for the same period in 2002 from  continuing
operations.  The  negative  sales were due to returns from client  trials.  This
reduction  in sales from the six months  ended June 30,  2003 as compared to the
six months ended June 30, 2002 is principally  due to not having unit sales from
the sold entity of Tiger  Ltd.(sold in December 2002) that reported sales in the
comparable  period of the first six months of 2002.  With the new start up Tiger
Europe Ltd. the company was focused in second  quarter 2003 on building its next
generation  of product with  enhanced  features and in  developing  accounts and
doing trails in the rental car business areas. In first quarter 2003 trials were
under way at a rental car a concern. Those trials were concluded successfully in
second quarter 2003 but a contract was not received from the enterprise.

Gross  Profits:  Gross  profits were  $(12,548) for the first six months of 2003
compared to $(43,058) for the first six months of 2002.  The impact of recording
returns from trials created the negative  gross margin.  The Company has made an
initial  investment in a new child tracker  product that was abandoned  later in
2003 when the focus switched to gaming handheld entertainment device.

Selling  Expenses:  Selling and  marketing  expenses for the first six months of
2003 were $58,761  compared with $249,161 for the same time period in 2002. Much
of the $190,400  reduction  can be  attributed  from not having the costs of the
divested  Tiger Ltd.  which was in the  results for first six months of 2002 and
the  transformation  of the company into a  development  concern with a focus on
selling  to  rental  car  concerns.  Most of this  actual  cost  related  to the
establishment  of potential  orders for rental car Telematics  products and a UK
based motor bike company that produced motor bikes in China.

General and Administrative Expenses: General and administrative expenses for the
six months ended June 30, 2003 were $875,690 compared to $2,853,344 or down over
$1,977,654.  This  decrease  came from the lower costs with the  divestiture  of
Tiger Ltd. in December 2002 and the associated  staff  reductions from the sale.
In order to further reduce  expenditures the Company downsized and relocated its
corporate  office in late 2002 and continued to operate at a reduce cost rate in
2003 first six months as compared  to the same time period in 2002.  These staff
reduction  have reduced costs and allowed the Company to sustain  operations but
it has delayed  certain  filings with  regulatory  bodies and made the Company's
control  system  extremely  reliant on fewer persons than would  normally be the
case. A significant  reason for actual costs incurred in 2003 to date of being a
public  company,  primarily fees for accounting,  legal,  and  professional  and
consulting  services.  These fees were  approximately  $278,000 in the first six
months of 2003  although  some of the  expenses  were normal fees of running any
business.  Expenditures  were made configure the product to obtain to obtain the
coveted Thatcham Q class rating for the product. This rating may allow insurance
companies to provide a discount in costs to users of Tiger's telematics devices.
Expenditures have been made in developing  several new products  including Child
Tracker  devices (since  terminated) and gaming  handheld  devices.  The Company
expensed  $29,090  in the  first  six  months  of 2003.  All of these  costs are
expensed as incurred and are not capitalized for financial  reporting  purposes.
The Company  anticipates an increase in its general and administrative  expenses
in future periods as part of its product development strategy.

Other Expenses:  Other expenses for the first six months of 2003 were $20,706 as
compared  to  $(3,801,929)  for the  first six  months of 2002.  The bulk of the
difference was the impairment of good will write down in 2002 of $3,714,818 that
was not in 2003 numbers.  Other expenses  consisted of interest expense on loans
of $24,379 and  currency  translation  adjustments  of a positive  $45,085.  The
currency  translation  adjustment accounted for virtually all of the increase in
this  category  and is due to the drop in the dollar  currency  relative  to the
sterling  since the  acquisition  of Tiger Ltd.  in February  2002 and  carrying
foreign  based  assets on the  balance  sheet.  Interest  in 2003 of  $24,379 is
$14,241  lower or about 37% less  than in the  first  six  months of 2002 as the
company  converted  certain interest bearing debt to common stock during the 4th
quarter of 2002.

<PAGE>

Net Loss from continuing  operations:  The Company reported an operating loss of
$939,195 in the six months ended June 30, 2003  compared to  $6,947,492  for the
same time period in 2002.  The loss was lower due to the costs  associated  with
the divested Tiger Ltd. no longer  included in operations  since it was sold and
the cost reductions undertaken in late 2003. Management does anticipate that its
losses in future  quarters will grow  materially as it expenses  trial costs for
its Telematics products into the rental car industry and it expenses development
cost for its new  products  of GPS and gaming  device  Gizmondo.  The  Company's
management  staff has been right sized and has expertise and  infrastructure  to
grow the Company rapidly.  Management  considers these costs as an investment in
setting the Company in a position to grow rapidly in the near future.

Net  Loss  from  discontinued  operations:  The  Company  reported  a loss  from
discontinued  operations  of $0 in the first six months of 2003 as compared to a
$353,430  loss in the same time period in 2002.  On August 9, 2002,  the company
sold the assets of the flooring  segment  effectively  eliminating  that segment
going forward from that date.

Net Loss: The Company incurred a total loss of $939,195 for the first six months
of 2003 as  compared to a loss of  $7,300,922  for the first six months of 2002.
The difference of nearly  $6,361,727  reduction is attributed the divestiture of
Tiger Ltd. and not having its losses in first six months of 2003 results and the
cost reductions  taken in late 2002 that helped results for the six months ended
June 30, 2003.  There will be no  discontinued  operation  impacting  2003 going
forward.  The UK  subsidiary  will  incur  costs in the  development  of its new
products and in marketing its Telematics  products.  The anticipates that future
net losses per quarter will be considerable  higher then in first quarter as the
company  increases  the  expenditures  in product  development  for Gizmondo and
marketing in moving products to the market.


                         LIQUIDITY AND CAPITAL RESOURCES

The Company does not have any off-balance  sheet  arrangements  that have or are
reasonably likely to have a current or future effect on its financial condition,
revenues or expenses, results of operations,  liquidity, capital expenditures or
capital resources that are material to investors.
In 2002 and during 2003 the Company  funded its  operating  losses and  start-up
costs  principally with loans from stockholders or other parties and through the
issuance of shares of commons  stock.  Without  such equity  funding the Company
would not have been able to sustain its operations.

In the six months ended June 30, 2003, the Company's  working  capital  improved
slightly  This was the result of in current  assets,  consisting of decreases in
accounts  receivable of $109,766,  inventory of $129,375,  prepaid  expenses and
other  current  assets of  $82,434,  and assets of  discontinued  operations  of
$517,434, offset by increases in current liabilities, consisting of increases in
accounts payable of $518,632,  accrued  expenses of $32,427,  and increased by a
reduction  of  liabilities  to  stockholders  of  $293,804  and  liabilities  of
discontinued operations of $482,209. $1,062,000 of the payables relates to Tiger
USA,  and  reflects  contingent  liabilities  allegedly  assumed in the purchase
agreement.  These liabilities are of the subsidiary Tiger USA and may not be the
obligations  of Tiger  Telematics,  Inc  although  they are  carried as Accounts
Payable on the  Consolidated  Balance  Sheet.  As discussed in Note J.  Business
Considerations to the Consolidated  Financial Statements the Company has hired a
legal counsel to analyze and advice as to potential liabilities arising from the
purchase of the assets of Comworrx and associated  causes of actions against the
seller and its  shareholders.  The Company has been in continued  serious recent
discussion with the seller regarding a settlement of the  obligations.  Also, in
the six months  ended June 30, 2003 the amounts  due  stockholders  reduced as a
result of the debt  conversions  of  certain  stock  holders to equity not fully
offset by continued loans from stockholders. The Company also retired $93,100 of
obligations  in first quarter by issuing  shares of commons stock and $25,000 in
second quarter.

<PAGE>

Certain creditors of the company's Tiger Europe Ltd. have made formal demands on
the Company for repayment of  indebtedness  for services or products  ordered by
the  company.  To date,  the  company has been able to meet those  demands  with
payments or enter into acceptable  payment  arrangements but without  additional
funding these demands can not be met in the future.

The Company does not have any bank loans or lending facilities.  The Company has
obtained loans from stockholders and raised additional financing through private
placements  of  shares of  common  stock  principally  from  accredited  foreign
investors. See also Note K Subsequent Events. On August 9, 2002 the Company sold
the assets of the flooring  division  including this  inventory,  which improved
liquidity  requirements during the balance of 2002 and in its quarter of 2003 as
the purchaser retired certain  obligations which were removed from the Company's
balance  sheet.  The Company  continued  to issue  shares of Common Stock in the
first and second quarter ended June 30, 2003 and subsequent quarters of quarters
of 2003 to retire certain obligations due for payment.

The  Company  incurred  operating  losses in 2002 and in the first six months of
2003 of $13,500,000 and $939,000  respectively.  The losses were at a much lower
rate in 2003 due to cost  reductions  and divestures of  unprofitable  concerns.
Since  the  Company  was not  able to  generate  positive  net cash  flows  from
operations,  additional  capital was needed.  This capital has been  provided by
certain  principal  stockholders,  who have funded the Company  through loans as
needed, and from the sale of Common Stock and warrants through private placement
transactions.

In October 2002,  certain  stockholders  converted $455,176 of debt into Company
Common Stock which reduced debt and improved liquidity in the balance sheet. The
Company  anticipates  further  cash  assistance  in the form of  loans  from its
stockholders to assist in liquidity while the Company raises additional  capital
although  no  assurances  can be given  that  they  will be able or  willing  to
continue such support.  The sale of the assets of the flooring segment on August
9, 2002 helped  liquidity as liabilities  assumed were less than assets sold and
the Company no longer required to fund the operating  losses and working capital
needs of that flooring segment going forward.

The Company evaluated the business of its acquired assets of Comworxx  (acquired
on June 25, 2002 by the wholly owned  subsidiary  Tiger USA,  Inc), to determine
the  appropriate  time if ever to launch these  products  full scale in the U.S.
Based on a post  acquisition  evaluation  of the assets and market  position  of
Tiger USA, the Company  determined  that the goodwill from the  acquisition  was
impaired  wrote it down in full in Second  Quarter  2002.  The Company  retained
legal counsel to review its options under the purchase  agreement  that acquired
these assets. Although over a year has gone by, the Company is in recent serious
discussions with the shareholders of the seller for modification of the terms of
the  purchase  agreement  due in  part  to  potential  misrepresentation  in the
purchase  agreement  that  Comworxx  was a viable  business.  They want  certain
payments  they allege are called for under the Purchase  Agreement.  The Company
has had  numerous  discussions  with the  sellers  in  regards  to a  settlement
agreement and such  discussions are being continued.  The Company  cancelled the
launch of the  product  permanently.  The  Company  effectively  mothballed  the
operations of Tiger USA and discontinued  those operations,  and sold the assets
in partial  payment to the landlord of the facility used by the business  assets
bought by Tiger USA.

The Company will seek to raise additional equity financing as needed to fund the
development and the launch of the Gizmondo product as needed. However, there can
be no  assurance  this  additional  capital or other form of  financing  will be
available, or if available on terms reasonably acceptable to the Company.

<PAGE>

The Company anticipates that it will meet its liquidity of capital needs for the
next twelve months through equity  financing but no assurances can be given that
this will occur.  As the company  continues  to  experience  negative  operating
results in 2003 and 2004,  the Company's  liquidity  will remain  strained.  The
Company is dependent upon financing from its  shareholders  and from the sale of
common stock of the company.  The Company has been in  discussions  with various
parties for  various  types of trade  financing  to begin upon the launch of the
Gizmondo  product.  There can be no assurances  that the Company will be able to
continue to obtain this funding from external sources. There can be no assurance
that additional capital beyond the amounts forecasted by the Company will not be
required or that any such required capital will be available on terms acceptable
to the Company, if at all, at such time or times as required by the Company.


Part II.
                             TIGER TELEMATICS, INC.
                                OTHER INFORMATION



Item 1.  Legal Proceedings

         Not applicable

Items 2. Changes in Securities and Use of Proceeds

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable

Item 4.  Submission of Matters to a Vote of Security Holders

         Not Applicable

Item 5.  Other Information


Item 6.  Exhibits and Reports on Form 8-K

         Exhibit 31 Form 302 Certification.
         Exhibit 32 Certification Section 906 of Sarbanes-Oxley Act of 2002




SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

TIGER TELEMATICS, INC.

/S/ Michael W. Carrender      Chief Executive Officer, Director    April 29,2004
------------------------      and Chief Financial Officer
Michael W. Carrender          For the Registrant